TOKYO, October 29, 2002 --Mitsubishi Electric Corporation today announced its consolidated and non-consolidated financial results for the half-year ended September 30, 2002 as follows:

Consolidated:
Net sales	1.6389 trillion yen (8% decrease)
Operating income	23.2 billion yen (133% increase)
Income before income taxes	11.7 billion yen
Net income	6.7 billion yen (310% increase)
Non-consolidated:
Net sales	1.0450 trillion yen (12% decrease)
Operating income (loss)	(8.7) billion yen
Ordinary profit	9.0 billion yen
Net income	9.1 billion yen

Helped by a gradual improvement in economic conditions worldwide, the Japanese economy also showed a measure of improvement in the first half of 2002 in some areas of exports and production. However, in the absence of a full-scale recovery of domestic demand, the recovery pace is clearly slow, especially recently. Information technology-related demand has also been weak particularly for telecommunications infrastructure, personal computers and the like, ensuring a continued severe business environment. Under these circumstances, the Mitsubishi Electric Group has sought not only to boost the profitability of each of its business interests individually but also to strengthen management by, for example, reducing the assets base and cutting fixed costs, and in so doing, improve earnings at the earliest possible date.

Cash Flow
The company realized a positive free cash flow of 84.6 billion yen in the first half with the help of a year-on-year increase in the operating cash flow of 52.7 billion yen to 124.7 billion and a year-on-year reduction of 89.6 billion yen in the investment cash flow, mainly due to reductions in capital expenditure, to 40.0 billion yen. On the other hand, the financial cash flow represents net cash used of \170.7 billion following loan repayments and bond redemptions.

Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to the same period in the previous year, sales decreased by 9% to 332.5 billion yen and operating income was 8.9 billion yen, a decrease of 3.5 billion yen compared to the same period last year.

Social infrastructure systems orders fell short of their year-ago levels due to reduced orders for industrial equipment and public works-related equipment, reflecting the harshness of the business environment in general and reduced levels of corporate capital expenditure and the slow growth of public works spending in particular. Sales also declined year-on-year due to a reduction in the demand for electrical equipment and parts for use at large scale electric power plants and for public works-related equipment.

Despite weak demand and falling prices throughout most of the world, building systems orders and sales remained on par with last year thanks to the posting of large-scale domestic project sales associated with redevelopment of the metropolitan area and, on the overseas front, to the growth of orders and sales to the buoyant Chinese market and also to the South Korean market, which we have recently re-entered. Operating income similarly declined as a result of falling sales and prices.

As a result, revenues from overall segment sales declined by 9% year-on-year.

The Industrial Automation Systems segment experienced a 2% increase in sales to 307.7 billion yen while operating income increased by 7.5 billion yen to 27.9 billion yen compared to the same period last year.

Industrial equipment orders and sales growth were on par with the previous year reflecting reduced demand for FA equipment, such as servo motor systems and programmable controllers, balanced in turn by the growing demand for semiconductor and liquid crystal manufacturing equipment, etc. both at home and overseas. Reduced domestic demand for production facilities, and building and construction projects led to a year-on-year fall in orders and sales of electric motors and power supply controllers.

On the industrial mechatronics front, orders and sales of numerically controlled tools rose year-on-year due to the recovery of demand for tooling machines in countries such as Taiwan and South Korea. On the other hand, orders and sales of other machine tools slumped well below year-ago levels, reflecting declining demand both at home and abroad. Orders and sales of automotive equipment were up year-on-year thanks primarily to strong exports by the automobile manufacturers.

As a result, revenues from overall segment sales rose 2% year-on-year. Operating income also rose thanks, among other things, to cost reductions.

In the Information and Communication Systems segment, sales dropped by 18% to 318.6 billion yen compared to the same period last year with an operating loss of 6.5 billion yen, which is an improvement over the same period last year by 21.0 billion yen.

Orders and sales of telecommunications equipment fell short of their previous year levels due, among other things, to the restructuring of our mobile handsets operations in Europe, and the deferral of capital spending on telecommunications infrastructure by telecommunication companies. Information systems and service sales were up over last year due to the growth of systems integration business, particularly large-scale project sales. Space systems orders were up year-on-year helped by new large-scale project orders but sales fell due to the scaling down of large-scale projects by public agencies. Defense-related orders and sales both fell short of their year-ago levels, reflecting a temporary decline due to the timing of large-scale defense-related projects. Operating losses were reduced thanks to the continued restructuring of the company's mobile handsets operations.

As a result, revenues from overall segment sales fell 18% year-on-year.

The Electronic Devices segment recorded sales of 225.3 billion yen, representing a decrease of 14% and a negative operating income of 25.1 billion yen, which is 10.3 billion yen more than the same period last year.

Demand for micro-controllers for consumer electronic equipment and for SRAM embedded flash memory packages for the domestic mobile handsets market recovered gradually and this, coupled with the impact of further reductions in IT investment worldwide in areas such as optical communications, previously the main driver of semiconductor demand, led to a year-on-year drop in semiconductor business orders and sales.

On the LCD business front, although the prices of the company's mainstay 15.0-inch liquid crystal displays fell due to aggressive production by Taiwanese and South Korean manufacturers, orders and sales nevertheless grew in year-on-year terms thanks to the surging growth in the market as a whole. The segment also showed an operating loss due primarily to declining semiconductor division sales.

As a result, revenues from overall segment sales fell 14% year-on-year.

In the Home Appliances segment, sales decreased by 1% to 369.2 billion yen and operating income decreased by 2.8 billion yen to 23.0 billion yen compared to the same period last year.

Despite solid growth of color TV sales, the company's home appliance, and audio and video equipment sales fell short of their year-ago levels due to the adverse impact of such factors as an unexpected short, hot summer and weak consumer spending, etc. on air conditioners. Although ventilation fans sales experienced nominal growth, due in part to the flat rate of housing starts, residential equipment sales nevertheless rose above their prior-year levels thanks to growing sales of electric water heaters and solar power generation systems.

Weak sales in package air conditioning systems, etc. attributable primarily to among other things, the flat rate of new non-residential building construction starts, led to a year-on-year decline in sales. Visual information business sales also fell year-on-year due to a slump in sales of video-related equipment such as liquid crystal projectors and commercial printers.

Overseas operations posted year-on-year sales growth helped by buoyant sales of package air conditioning systems and room air conditioning units in Europe and healthy sales of large projection TVs in the US. The segment also showed a decline in operating income due to falling sales and prices.

As a result, revenues from overall segment sales fell 1% year-on-year.

In the Others segment, sales decreased by 6% to 266.0 billion yen compared to the same period last year. Operating income was 6.0 billion yen, which is 1.0 billion more than the same period last year.

Associated companies, primarily financial, logistics, engineering, and real estate companies posted a decline in aggregate sales compared with the previous year. However, the segment showed an increase in operating income thanks, among other things, to cost reductions.

As a result, revenues from overall segment sales fell 6% year-on-year.

Dividend Policy
In the business year ended March 2002, we posted a substantial net loss, thereby significantly reducing our retained earnings. Under the circumstances, we feel that to conserve the company's strength, reinforce its financial position, and enhance profitability, all of which will, in our view, be to the long-term advantage of our shareholders, we must with great regret, forgo the interim shareholder dividend for the current year.

Financial position
Assets, liabilities, and shareholders' equity:
The company's total assets declined by 268.0 billion yen from the end of the previous fiscal year to 3,789.3 billion yen. Major changes included a reduction of 92.2 billion yen in cash and cash equivalents resulting, among other things, from the repayment of loans and redemption of bonds, a reduction of 117.9 billion yen in trade receivables enabled by the collection of Energy and Electric System receivables, the associated sales for which tend to be concentrated in the second half of the year, and a reduction of 44.3 billion yen in tangible fixed assets enabled, among other things, by the curtailment of investment in business fields such as Electronic Devices in response to the decline in IT-related demand.

On the liability side, the balance of total interest bearing debt outstanding fell 178.3 billion yen from the end of the previous year to 1,375.7 billion yen, reducing the loan ratio by 2.0 points from the end of the previous year to 36.3%. Accounts payable declined by 108.7 billion yen.

Net income of 6.7 billion yen was added to the shareholders' equity but the collapse of share prices both at home and overseas reduced the company's pension assets, necessitating an increase in the retirement and severance benefit reserve by applying minimum pension liability adjustments, thereby reducing the balance of the shareholders' equity to 488.7 billion yen, 52.9 billion yen less than the end of the previous year, and reducing the company's shareholders' equity ratio by 0.5 points to 12.9%.

We are planning to transfer a portion of our shareholding in our domestic financial services subsidiary in the second half, thereby eliminating it from our list of consolidated subsidiaries and reducing our assets and liabilities as per end of FY 2003.

Annual Forecast for Fiscal Year 2003
(The year ended March 31^st, 2003)
As the worldwide economy continues its slow recovery in the upcoming term, we do not expect any rapid improvement due to negative influences, which are expected to be felt by weak stock prices, and increased tensions concerning the Middle East, etc.

Under the circumstances, Mitsubishi Electric Group will be seeking to improve the earnings of its individual operations and its management of the business as a whole, thereby securing the current year's earnings and contributing to the earliest possible improvement in the group's financial position. Forecasts for the fiscal year ending March 31^st, 2003 are as follows:

Consolidated:
Net sales	3.6500 trillion yen
Operating income	65.0 billion yen
Income before income taxes	45.0 billion yen
Net income	25.0 billion yen
Non-consolidated:
Net sales	2.4500 trillion yen (2% increase Y-O-Y)
Operating income	25.0 billion yen
Ordinary profit	40.0 billion yen
Net income	20.0 billion yen

Note: The forecast of results above is based on assumptions deemed reasonable by the Company at the present time, and actual results may differ significantly from forecasts.

MANAGEMENT POLICY

Management Policy
The Mitsubishi Electric Group intends to contribute to a new society, industry, and daily life based on its corporate statement "Changes for the Better" formulated last year as a foundation from which to achieve a 'better tomorrow' . With this end in view, the group will seek, with the help of 'balanced management' to develop management strategies for the achievement of three objectives, 'growth', 'profitability and efficiency', and 'soundness', to establish a solid management base as soon as possible.

Thus, we will seek to fulfill the expectations of all our various stakeholders such as our clients and shareholders, by channeling our efforts into the further enhancement of corporate value.

Policy for Profit Sharing
With the ultimate aim of enhancing corporate value, our basic policy is to seek a comprehensive improvement in enhancing shareholder value by distributing as much profit as may be permitted by our current year earnings position while at the same time retaining sufficient profit to strengthen the group's financial position.

Policy on Reducing Minimum Stock Purchase Requirement
Mitsubishi Electric recognizes that one of its most important management goals must be to enhance corporate value along with the number of stable, long-term shareholders. With this in mind, we will be carrying out a meticulous study of the overall benefits and costs of reducing the size of purchase requirement for our stock-trading unit.

Accelerated restructuring of the Mitsubishi Electric Group to safeguard earnings and increase value-added
We expect the management environment to deteriorate even further from here on and it is with this in mind that the Mitsubishi Electric Group will be looking not only to secure earnings by continuing to improve the earnings of each of its individual business interests but at the same time to accelerate the restructuring of the group as a whole, to achieve an early improvement in the group's earnings and financial position, and to strengthen its management base.

Specifically, we will be looking to take active steps to improve profitability by pressing ahead with our program of business 'Focus and Concentration' and by reforming our business structures. We will also continue to improve group management with the help of action programs such as EA21, the object of which is to reduce our asset base and cut fixed costs, and the SIGMA 21 Project, the aim of which is to radically reduce materials procurement costs.

Furthermore, by increasing value-added through the development of our individual business interests based on an accentuation of their individual strengths (advantages over rivals, technologies, etc.), we will seek to accelerate the restructuring of the Mitsubishi Electric Group as a whole and to establish at the earliest possible moment a management structure with the capacity to withstand rapid changes in the management environment.

Key Management Events
On October 3, 2002, the Mitsubishi Electric Corporation (hereafter, "Mitsubishi Electric") reached an agreement with Hitachi, Ltd. to integrate their semiconductor operations in the form of a joint venture with a remit to focus on system LSI operations. The new company, which will operate under the name of Renesas Technology Corp. (hereafter, "Renesas Technology"), will be formally established on April 1, 2003.

CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS

1. 1. CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC

(In billions of yen except where noted)

	FY '03 1st half (A) April 1, 2002 - Sept. 30, 2002	FY '02 1st half (B) April 1, 2001 - Sept. 30, 2001	(A)/(B) (%)		Fiscal 2002 (Apr. 1, 2001-Mar. 31, 2002)
Net sales	1,638.9	1,773.5	92		3648.9
Operating profit (loss)	23.2	9.9	233		(68.0)
Income before income taxes (loss)	11.7	(20.3)	-		(155.1)
Net income (loss)	6.7	1.6	410		(77.9)
Net income (loss) per share	3.16 yen	0.77 yen	410		(36.31)yen

Fiscal 2003 1^st half: April 1, 2002 - September 30, 2002

Note:

1) Consolidated financial charts made according to U.S. GAAP. 2) Company has 144 consolidated subsidiaries.

2. NON-CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC

(In billions of yen except where noted)

		(A) April 1, 2002 - Sept. 30, 2002	(B) April 1, 2001 - Sept. 30, 2001	(A)/(B) (%)		Fiscal 2002 (Apr. 1, 2001-Mar. 31, 2002)
Net sales		1,045.0	1,193.7	88		2,409.3
Ordinary profit (loss)		9.0	(14.8)	-		(109.5)
Net income (loss)		9.1	(42.6)	-		(143.6)
Dividend per share		None (First half)	None (First half)	-		None
Net income (loss) per share		4.24 yen	(19.88 ) yen	-		(66.92 ) yen

Fiscal 2003 1st half: April 1, 2002 - September 30, 2002

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	FY '03 1st half (April 1, 2002 - Sept. 30, 2002) A	% of total	FY '02 1st half (April 1, 2001 - Sept. 30, 2001) B	% of total	A/B (%)		FY '02 (April 1, 2001 - March 31, 2002)	% of total
Net sales	1,638,967	100.0	1,773,546	100.0	92		3,648,986	100.0
Cost of sales	1,221,785	74.6	1,331,134	75.0	92		2,842,658	77.9
Selling, general and Administrative expenses	393,981	24.0	432,458	24.4	91		874,355	24.0
Operating income (loss)	23,201	1.4	9,954	0.6	233		(68,027)	(1.9)
Non-operating income	32,515	2.0	24,901	1.4	131		48,645	1.3
_Interest and Dividends	7,151	0.4	8,079	0.5	89		14,246	0.4
_Other income	25.364	1.6	16,822	0.9	151		34,399	0.9
Non-operating expenses	43,950	2.7	55,235	3.1	80		135,760	3.7
_Interest	10,275	0.6	14,402	0.8	71		28,799	0.8
_Other	33,675	2.1	40.833	2.3	82		106,961	2.9
Income (loss) before income taxes	11,766	0.7	(20.380)	(1.1)	-		(155,142)	(4.3)
Income tax	6,681	0.4	(21,290)	(1.2)	-		(74,244)	(2.1)
Equity in earnings of affiliated companies	1,692	0.1	744	0.0	227		2,928	0.1
Net income (loss)	6,777	0.4	1,654	0.1	410		(77,970)	(2.1)

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	FY '03 1st half (A) ending Sept. 30th ,2002	FY '02 (B) ending March 31st , 2002	(A) - (B)
(Assets) Current assets	1,953,562	2,157,889	(204,327)
Cash and cash equivalents	362,639	454,890	(92,251)
Short-term investments	17,969	13,793	4,176
Trade receivables	700,857	818,817	(117,960)
Inventories	642,044	643,642	(1,598)
Prepaid expenses and other current assets	230,053	226,747	3,306
Long-term receivables	32,394	40,150	(7,756)
Investments	394,822	447,283	(52,461)
Net property, plant and equipment	849,584	893,965	(44,381)
Other assets	559,018	518,117	40,901
Total assets	3,789,380	4,057,404	(268,024)
(Liabilities and shareholders' equity) Current liabilities	1,770,057	1,960,863	(190,806)
Bank loans and current portion of long-term debt Trade payables Other current liabilities	742,639 558,358 469,060	813,865 667,078 479,920	(71,226) (108,720) (10,860)
Long-term debt	633,086	740,180	(107,094)
Employee retirement and severance benefits	831,791	748,779	83,012
Other fixed liabilities	9,429	10,639	(1,210)
Minority interests	56,244	55,233	1,011
Shareholders' equity	488,773	541,710	(52,937)
Capital	175,820	175,820	--
Capital surplus	210,644	210,644	--
Retained earnings	369,453	362,676	6,777
Accumulated other comprehensive income (loss)	(267,111)	(207,420)	(59,691)
Treasury stock at cost	(33)	(10)	(23)
Total liabilities and stockholders' equity	3,789,380	4,057,404	(268,024)

Balance of debt		1,375,725	1,554,045	(178,320)
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments		(12,494)	3,073	(15,567)
Minimum pension liability adjustments		(260,462)	(221,543)	(38,919)
Net unrealized gains on securities		5,845	11,050	(5,205)

CONSOLIDATED CASH FLOW STATEMENT

(in millions of yen)

	FY '03 1st half (A) (April 1, 2002 - Sept. 30, 2002)	FY '02 1st half (B) (April 1 , 2001 - Sept. 30, 2001)	A-B	FY '02 (April 1, 2001 - March 31, 2002)
I. Cash flows from operating activities
1 Net income (loss)	6,777	1,654	5,123	(77,790)
2 Adjustments to reconcile net income (loss) to net cash provided by operating activities
(1) Depreciation	102,046	109,174	(7,128)	230,518
(2) Deferred income taxes	(16,346)	(45,323)	28,977	(115,715)
(3) Decrease (increase) in trade receivables	119,142	233,116	(113,974)	170,543
(4) Decrease (increase) in inventories	(4,601)	(52,008)	47,407	83,135
(5) Decrease in prepaid expenses and other assets	18,434	2,400		16,034
(6) Increase (decrease) in trade payables	6,637	9,617	(2,980)	18,434
(7) Increase (decrease) in other liabilities	20,145	(2,398)	22,543	(3,214)
(8) Other, net	(1,713)	18,179	(19,892)	34,628
Net cash provided by operating activities	124,734	71,940	52,794	113,429
II. Cash flows from investing activities
1 Capital expenditure	(62,238)	(119,769)	57,531	(221,092)
2 Proceeds from sale of property, plant and equipment	2,620	7,710	(5,090)	16,344
3 Purchase of short-term investments and investment securities	(8,228)	(52,129)	43,901	(54,998)
4 Proceeds from sale of short-term investments and investment securities	28,811	35,450	(6,639)	75,760
5 Other, net	(1,024)	(970)	(54)	(169)
Net cash used in investing activities	(40,059)	(129,708)	89,649	(184,155)
I + II Free cash flow	84,675	(57,768)	142,443	(70,726)
III. Cash flows from financing activities
1 Proceeds from long-term debt	128,495	111,304	17,191	439,388
2 Repayment of long-term debt	(160,446)	(122,543)	(37,903)	(320,417)
3 Increase in bank loans, net	(138,823)	57,222	(196,045)	16,955
4 Dividends paid	-	(12,883)	12,883	(12,883)
Net cash provided by (used in) financing activities	(170,774)	33,100	(203,874)	123,043
IV. Effect of exchange rate changes on cash and cash equivalents	(6,152)	1,399	(7,551)	8,198
V. Net increase in cash and cash equivalents	(92,251)	(23,269)	(68,982)	60,515
VI. Cash and cash equivalents at beginning of period	454,890	394,375	60,515	394,375
VII. Cash and cash equivalents at the end of period	362,639	371,106	(8,467)	454,890

Fiscal 2003, 1^st half: April 1, 2002 - September 30, 2002

CONSOLIDATED SEGMENT INFORMATION

1. Product Segment

(in millions of yen)

Product Segment	FY '03 1st half (April 1, 2002 - Sept. 30, 2002)			FY '02 1st half (April 1, 2001 - Sept. 30, 2001)			(A)/(B) (%)	FY '02 (April 1, 2002 - March 31, 2002)
	Sales (A)	% of total	Opera- ting profit (loss)	Sales (B)	% of total	Opera- ting profit (loss)		Sales	% of total	Opera- ting profit (loss)
Energy and Electric Systems	332,598	18.3	8,991	363,741	18.4	12,590	91	920,667	22.8	46,580
Industrial Automation Systems	307,740	16.9	27,979	302,093	15.3	20,390	102	600,589	14.8	33,165
Information and Communication Systems	318,690	17.5	(6,530)	390,011	19.7	(27,619)	82	762,586	18.8	(90,246)
Electronic Devices	225,321	12.4	(25,150)	261,787	13.3	(14,838)	86	470,225	11.6	(80,560)
Home Appliances	369,235	20.3	23,019	372,944	18.9	25,898	99	726,151	17.9	37,170
Others	266,000	14.6	6,051	283,711	14.4	5,029	94	569,799	14.1	8,563
Sub Total	1,819,584	100.0	34,360	1,974,287	100.0	21,450	92	4,050,017	100.0	(45,328)
Eliminations and other	(180,617)	-	(11,159)	(200,741)	-	(11,496)	-	(401,031)	-	(22,699)
Total	1,638,967	-	23,201	1,773,546	-	9,954	92	3,648,986	--	(68,027)

Fiscal 2003, 1st half: April 1, 2002 - September 30, 2002

*Note: Intersegment sales are included in the above chart.

2. Location segment

(in millions of yen)

	FY '03 1st half		FY '02 1st half		(A)/(B) (%)		FY 2002
	Sales (A)	Operating profit	Sales (B)	Operating profit (loss)			Sales	Operating profit (loss)
Japan	1,436,916	2,961	1,594,569	29,417	90		3,232,688	(36,980)
North America	149,406	2,364	160,582	(14,274)	93		327,648	(18,086)
Asia (except Japan)	154,951	12,061	157,170	11,401	99		305,957	17,544
Europe	100,787	2,009	119,365	(22,373)	84		232,260	(46,852)
Others	6,960	126	6,166	73	113		13,625	364
Total	1,849,020	19,521	2,037,852	4,244	91		4,112,178	(84,010)
Eliminations	(210,053)	3,680	(264,306)	5,710	--		(463,192)	15,983
Total	1,638,967	23,201	1,773,546	9,954	92		3,648,986	(68,027)

Fiscal 2003: April 1, 2002 - September 30, 2002

*Note: Intersegment sales are included in the above chart.

3. Overseas Sales

(in millions of yen)

	FY '03 1st half		FY '02 1st half		A/B (%)		FY '02
	Sales (A)	% of total net sales	Sales (B)	% of total net sales			Sales	% of total net sales
North America	151,023	9.2	161,333	9.1	94		324,259	8.9
Asia (except Japan)	190,655	11.6	168,306	9.5	113		342,313	9.4
Europe	96,990	5.9	111,871	6.3	87		218,996	6.0
Others	28,914	1.8	30,738	1.7	94